Accenture SaaS Financial Applications

1. The Sky Is the Limit: Finance is Moving to the Cloud August 2013

2. Agenda Finance Technology Trends Drivers of SaaS Adoption Implementing SaaS Accenture’s Point of View Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 2

3. Finance Technology Trends Accenture Finance Study Leveraging technology to address new and changing regulation Reliable (global) harmonized Financial systems • 53% of Finance Executives indicated regulation as the most pressing environmental challenge facing Finance organization in comparison to permanent volatility, data, and talent. • 55% of Finance Executives devoting resources for technology and capability development to address regulation challenges • 43% of masters and 34% of non-masters Implementing or expanding their ERP systems in the next two years • Medium to large global enterprises are now choosing Finance SaaS for Core Financials (accelerated implementation, potential lower total cost of ownership, continual innovation, improved user interface) • Leaders implement in conjunction with integrated business services or expand existing integrated business services • Investing in standard and advanced enterprise performance management capabilities (43% of masters and Add value through strategic applications 31% of non-masters) • 39% of respondents Implementing or enhancing processes and systems to address governance, regulatory and compliance • Continued focus on advanced and integrated risk management processes and technologies • Deploying new workforce management programs and related technologies • Growing demand for analytics and technologies to turn data into forward-looking insight that enable business Harvest benefits from technology • leaders to make fast, confident decisions Continued efforts to drive cost and productivity improvements across core finance operations equipping them with the time, tools and information to be a valued partner to senior business executives Source: Accenture 2011 High Performance Finance Study Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 3

4. Finance Technology Trends Finance IT Trends and Implications Trends demanded by Business Users Implications to the Finance IT Infrastructure • The need to continually cost optimize the operations • The emergence of the Cloud creates a significant challenge to existing Governance processes • Demonstrate value back to the business – speed to market, service availability • An infrastructure that can scale up and down against business demand • Moving away from a single ERP solution to selective ‘best of breed’ • Move to a variable cost model rather than static • There is a need for an end to end service management function or integration capability • Intuitive, easy-to-use applications that work anywhere from any device. • Financial Management is more complex as a result of multiple ERP systems © Copyright Gartner, Source: The Impact of the Cloud on Architecting an ERP Solution by Pat Phelan, August, 2012 Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 4

5. Finance Technology Trends Agile Applications More Internal • Higher cost (pay up front) • Specialization Availability (Region/Industry) • Traditional solutions (Greater product functionality depth and reference customers) • Mostly In-sourcing Global Enterprise Finance Applications • Lower cost (subscription or “fixed” pricing) Less • Speed of implementation Internal • Emerging solutions • Outsourcing Cloud Finance Applications SaaS Finance Applications The new Business Transformation Themes: Agile Finance Solutions bringing “lights-on” capabilities in less time than before. Less internal and more reliance on external solutions and providers. Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 5

7. Cloud/SaaS Overview Why? Simple Clear Structure Many SaaS UIs are designed with simplicity in mind, so that the user doesn´t feel overwhelmed with the amount and complexity of content often present in ERP UIs. Less complex and more coherent is the navigation. SaaS applications follow web design principles, which most people are now comfortable navigating. Efficient Many SaaS UIs are designed to allow the user to complete the tasks with a minimum of actions allowing him to work with what he knows Clear Structure Efficient Intuitive Understand the application´s users and their work context Simple Engaging Intuitive Supportive Accessible Engaging Users want to login to the application and do his or her tasks, Users feel in control and comfortable using SaaS solutions Accessible Many SaaS applications are available on mobile devices, available when and where users need it. Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Supportive Provide effective support during the task completion, and report to the user what is happening in a simple way 7

8. Cloud/SaaS Overview Adoption Trends First Movers Second Movers Annual Revenue < $750M $750M - $2B > 2B Region North America, Europe, Japan Australia, China, and Brazil Most other territories Industry Example Software, Consulting Services, Supplier Networks, and Light Manufacturing Retail and Healthcare Late Adopters Continuous process manufacturing Current State Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 8

9. Why are organizations considering the cloud for EPM? Cost reduction • • • • Elasticity/ scalability • Capacity only when you need it • Ability to handle sudden load changes • Achieve high business agility Speed to market • Reduction of time to pilot and test projects • Faster availability to customers • Software updates included with service High performance computing • Increased capacity from your current physical infrastructure • Avoid provisioning (and paying) for the peak • “Infinite” computing capacity on demand Lower capital and operational costs Lower maintenance and energy costs Pay as you go OPEX costs in place of CAPEX Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 9

11. On-Premise and SaaS Compared Overview SaaS (Software as a Service) Software On-Premise Customers pay subscription fee per seat/user and module Customers pay perpetual license fee No hardware and upgrade fees are incurred, and generally, total cost of ownership is lower. Customers own and must operate the software with their own resources (or via a third party). Additional costs apply for hardware, maintenance and upgrades of the system. The vendor releases patches, functionality enhancements or full upgrades, so that the customer solution will be automatically updated at no additional cost Enhancement patches and release upgrade must be done by the customer or a third party Technology platform is hosted and operated by the vendor via Web access Hardware and software are installed at the customer premises (company asset) The application is typically offered in a multi-tenant architecture with all of the vendor’s customers accessing a single code base The implemented solution is supported and operated by the customer Lower one off implementation cost, quicker implementation cycle Higher one off implementation cost, longer implementation cycle Most Best of Breed providers follow a clear SaaS model Most “classic” ERP providers follow a clear “on-premise” model Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 11

12. Key Differences In SaaS Implementations Iterative vs. Waterfall Methodology Configuration vs. Customization Implications • Need strong project management to control scope and timeline Product Release Strategy • Business owners need to be clearly identified and empowered to make decisions on the spot Tenant Management • More real-time involvement from the business Implementation Team Composition • Increased Change Management effort up front Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 12

13. Key Differences In SaaS Implementations Iterative vs. Waterfall Methodology Implications Configuration vs. Customization • Can more readily drive adoption of standardized processes and leading practices Product Release Strategy Tenant Management • Adopt the solution capabilities, or create a work around rather than customize • Requires strong change management discipline earlier in the project Implementation Team Composition Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 13

14. Key Differences In SaaS Implementations Iterative vs. Waterfall Methodology Implications Configuration vs. Customization • Highly likely to experience a midimplementation product release / upgrade Product Release Strategy Tenant Management Implementation Team Composition • Need to determine strategy to understand impacts of frequent product releases and determine how to address • Plan to incorporate as part of iterative proto-typing where key functionality is anticipated Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 14

15. Key Differences In SaaS Implementations Iterative vs. Waterfall Methodology Implications Configuration vs. Customization • “New” activity for many teams – similar to traditional on-premise landscape management Product Release Strategy • Need up front Tenant Management strategy to coordinate prototyping, integration development activity Tenant Management Implementation Team Composition Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 15

16. Key Differences In SaaS Implementations Iterative vs. Waterfall Methodology Implications Configuration vs. Customization • May have greater vendor involvement due to newer solutions, need for vendor to accept configured solution for support Product Release Strategy • Outside prototyping, typically more remote work due to ease of access of cloud based environments Tenant Management Implementation Team Composition Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 16

18. What is right for my business? Key Considerations Time to Reevaluate Existing Solution? • Financial systems are not providing the information necessary to make solid business decisions • Financial systems cannot easily adapt to changing business requirements • Delivered SaaS business processes that fit business needs • No current solution exists or financial systems are on an unsupported version • Financial systems support is difficult to maintain and the skillsets needed are not readily available in the company / marketplace • Processes and capabilities fall behind industry benchmark Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 18

19. What is right for my business? Accenture’s PoV • The CFO’s role will continue to transform into one of a change enabler to better partner with other areas in the business and influence the selection of supporting tools • Determining the path forward will require the a Financials ERP Roadmap, driven by an analysis of various factors and a clear vision of IT strategy • On-Premise solutions currently provide the most functionality for large, multi-national companies with well established, robust products but SaaS ERP players are rapidly emerging • Ensure a Financials ERP business case considers all factors, explicit and implicit costs • A Financial ERP choice should be driven by needed functionality – If the organization is able to adopt the business processes prescribed by a SaaS vendor or has a simpler business model, SaaS solutions may be faster and cheaper to deploy – If an organization has unique or complex requirements, an On-Premise solution may be more appropriate • SaaS ERPs will continue to gain market share and become prevalent in all businesses across industries and regions over time Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 19

20. What is right for my business? Accenture’s PoV (Continued) The Financials ERP SaaS market will continue to evolve rapidly in the next 12-24 months for several key reasons: • SaaS players are investing heavily in Financials to address current challenges with functionality, global options and scalability • Fierce competition in the SaaS market will continue to lower cost • SaaS vendors will continue to make their products more transparent and secure to gain market share against On-Premise competitors. • The Two-Tier model will gain popularity to help implement tools quickly for M&A, divestures and subsidiaries • Integrations will be a major priority for SaaS releases and implementations • On-Premise providers recognize the SaaS threat and are beginning to compete in this space but at a slower pace than startups • SaaS solutions should be seriously considered in all finance strategies to determine if they can provide the necessary capabilities Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 20

21. Thank You Tamara Emerson Managing Director Global F&P Finance & Enterprise Performance - Enterprise Performance Management SaaS Lead 818 Stewart Street Suite 400 Seattle, WA 98101 email: tamara.l.emerson@accenture.com Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 21